Iron Ore Routed as ‘Center of Gravity’ Seen in Constant Decline
- Dalian futures and Shanghai coil end limit-down amid sell-off
- Data from Hedland show surging supplies from biggest exporter
CCLA's Bevan Sees More Noise in Metals Market
This article is for subscribers only.
Iron ore is in full-scale retreat, with futures in China plunging to end limit-down on investor concern about the outlook for demand in the world’s top user, fresh signs of burgeoning supply from Australia and the hostile backdrop of a broad-based sell-off in base metals.
“Iron ore’s center of gravity is constantly moving lower,” said Zhao Chaoyue, an analyst at China Merchants Futures Co. “Concerns about the glut have always been there. Port stockpiles are maintaining near a record and there’s a consensus that supply will go on expanding, especially in the second half.”